Axita Cotton Limited IPO – Review, Allotment, Subscription, GMP & DRHP

Axita Cotton Limited  is producing cotton bales and cotton seeds. The Company is producing mainly two varieties of cotton bales namely Shankar-6 and MCU-5/MECH. Axita Cotton Limited IPO comprises public Issue of  17,52,000 Equity Shares of Rs.10/- each at a price of Rs. 60  per Equity Share aggregating to Rs. 1051.20 Lakh.

Let’s have a detailed review of the company and analytics of the Axita Cotton Limited IPO release date, IPO offer price, subscription, Axita Cotton Limited IPO allotment, grey market price and other details like the company’s background, its financial positions, its promoters and other related things.

 


Axita Cotton Limited IPO Review & Ratings

IPO Ratings & Review
CriteriaRatings
Industry Sentiments8.5/10
Industry Ranking7.8/10
Company Background7.9/10
Company Reputation7.9/10
Competitive Edge7.7/10
Financial Statements7.8/10
Popularity Index8.4/10
Promoters Reputation7.7/10
Retail Appetite7.9/10
Top Brokers Review7.9/10
Overall Ratings8.1/10
Star Ratings★★★★☆

Summary of Axita Cotton Limited IPO

Axita Cotton Limited IPOAxita Cotton Limited Company is producing cotton bales and cotton seeds. The Company is producing mainly two varieties of cotton bales namely Shankar-6 and MCU-5/MECH. The production facility of their Company is situated at Kadi in Mahesana District of Gujarat state which is close to the rich cotton growing areas of Maharashtra, Saurashtra and other regions of Gujarat. Initial public offer of up to 1752000  Equity Shares of Rs. 10 each, at an Offer Price of Rs.60 per Equity Share for cash aggregating up to Rs. 1051.20 lakh. 

From FY 2013-14 to FY 2016-2017, as per the Restated Financial Statements,

  • The EBITDA and restated profit for the period/year have grown at a CAGR of 109.24% in  Fiscal 2018 from fiscal 2017 and were Rs.49.49 lakh and Rs. 109.24 lakh , respectively, in the three months ended June 30, 2018.
  • The net asset value per Equity Share was Rs. 2,148.09  and Rs.1,810.28 as of June 30, 2018 and March 31, 2018, respectively, as per the Restated  Financial Statements .
  • The company sales have grown at a CAGR of 21.92% from  12,345.78  lakh in Fiscal 2018 to 1,736.08 lakh  in Fiscal 2014  .

The Promoters of this company are Mr. Nitinbhai Govindbhai Patel, Mr. Kushal Nitinbhai Patel and Mr. Amitkumar Govindbhai Patel . The lead manager to the issue are  Beeline Broking Limited and the Registrar to this issue is  Link Intime India Private Limited.


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    Axita Cotton Limited IPO Date

    The opening and the closing date of Axita Cotton Limited IPO is 27 Dec 2018 to 2 Jan 2019.


    Axita Cotton Limited IPO Subscription

    Day / DateQIBNIIRIITotal Subscription
    Day 1: 27 Dec1.03x0.24x0.64x
    Day 2: 28 Dec1.63x0.48x1.06x
    Day 3: 31 Dec1.63x0.74x1.19x
    Day 4: 01 Jan1.66x1.05x1.35x
    Day 5: 02 Jan2.40x1.55x1.98x
    Shares Offered or Net Issue830,000830,0001,660,000

    The shares subscribed by the public will be updated herein on a daily basis.


    Axita Cotton Limited IPO Allotment Status

    Here, you can find the Allotment Status of this IPO.

    Basis of Allotment Finalization7-Jan-19
    Refunds Initiation8-Jan-19
    Credit of Shares to Demat Account9-Jan-19
    Share Listing Date10-Jan-19

    Axita Cotton Limited IPO Price Band

    The face value of each share is Rs 10, Cash Price is Rs 60, but the price band of the IPO is not yet disclosed. 


    Axita Cotton Limited IPO Equity Share Offering

    Initial public offer of up to 1752000 Equity Shares of Rs. 10 each, at an Offer Price of Rs. 60 per Equity Share for cash, aggregating to Rs. 1051.20 Lakh.


    Axita Cotton Limited – Company Overview

    Axita Cotton Limited   Company is producing cotton bales and cotton seeds. The Company is producing mainly two varieties of cotton bales namely Shankar-6 and MCU-5/MECH. The production facility of their Company is situated at Kadi in Mahesana District of Gujarat state which is close to the rich cotton growing areas of Maharashtra, Saurashtra and other regions of Gujarat. Their products are sold majorly in the state of Gujarat, Rajasthan, Maharashtra and Madhya Pradesh. They are also engaged in the business of trading of Kapas, cotton bales and cotton seeds. We are also doing ginning and pressing of Kapas on job work basis.

    The Company is promoted by Mr. Nitinbhai Govindbhai Patel, Mr. Kushal Nitinbhai Patel and Mr. Amitkumar Govindbhai Patel and are the guiding force behind the growth and strategic decisions of the Company.

    Competitive Strengths of Axita Cotton Limited :

    • Installed Capacity of 87,600 MT/Annum
    • Locational Advantage
    • Increase in Business Scalibility and Captive Consumption

    Business strategies of Axita Cotton Limited :

    • Inventory Level/Stocking of Goods
    • Quality of their products
    • Optimal Utilization of Resources
    • To build-up a professional organization
    • Continue to maintain strong relationships with  Customers

    Axita Cotton Limited – Financial Statements

    A quick look into the past financial performance of the company to understand its performance of business and evaluate the growth prospectus:

    Financial Summary:

    On the basis of Standalone statement:-

    Amount (in INR & Lakhs)
    31-Mar-1831-Mar-1731-Mar-1631-Mar-1531-Mar-14
    Total Assets1,810.281,316.47898.37786.40834.89
    Total Revenue12,345.789,023.066,808.83 7,691.201,736.08
    Total Expense12,283.119,150.676,858.837,736.451,725.65
    Profit After Tax82.132.7112.46(28.51)5.85

    Earnings per Equity Share (in Lakhs)

    31-Mar-1831-Mar-1731-Mar-16
    Basic & Diluted3.290.110.50

    From the above statements, one could find that the Axita Cotton Limited may perform well.


    Axita Cotton Limited IPO – Promoters

    The Promoters of this company are:

    • Mr. Nitinbhai Govindbhai Patel
    • Mr. Kushal Nitinbhai Patel
    • Mr. Amitkumar Govindbhai Patel

    List of Related Parties (Key Managerial Personnel)

    • Mr. Nitinbhai Govindbhai Patel
    • Mr. Kushal Nitinbhai Patel
    • Mr. Amitkumar Govindbhai Patel

    Interest in promotion of the Company

    Company is currently promoted by the Promoters in order to carry on its present business. Promoters are interested in the Company to the extent of their shareholding and directorship of the Individual Promoter in the Company and the dividend declared, if any, by the Company. The Promoters are interested in the transactions entered into the Company and the Promoter Group.

    Property Interest

    The promoters along with the promoter group will continue to hold collectively some percentage of the equity share capital of the company. As a result of the same, they will be able to exercise significant influence over the control of the outcome of the matter that requires approval of the majority shareholders vote.

    Interest in Intellectual Rights of the Company

    Promoters has not shown any interest in acquiring the intellectual rights of the company.


    Axita Cotton Limited IPO Offer Details or Issue Details

    Particulars No. Of Equity Shares
     Equity Shares Offered 1752000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 60/- each aggregating to Rs. 1051.20 Lakh
     Of which:
     Reserved for Market Makers  

    92000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 60/- each aggregating to Rs. 55.20 Lakh

     Net Issue to the Public 1660000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 60/- each aggregating to Rs. 996.00 Lakh
     Of which:
     Retail Investors Portion 582000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 60/- each aggregating to Rs. 349.20 Lakh
     Non-Retail Investors Portion1078000 Equity Shares of Rs. 10/- each at an Issue Price of Rs. 40/- each aggregating to Rs. 646.80 Lakh
     Equity Shares outstanding prior to the Issue4800000 Equity Shares of Rs. 10/- each
     Equity Shares outstanding after the Issue6552000 Equity Shares of Rs. 10/- each

    Axita Cotton Limited IPO Issue Object

    The IPO Issue Objects of the company is:

    • Net Incremental Working Capital Requirement

     

    Axita Cotton Limited IPO – Basis of the Offer Price

    The issue price is determined by the company in consultation with the Lead manager on the basis of the following qualitative and quantitative factors.

    Qualitative factors are:

    •  Location of the Factory (production Unit)
    • Experienced management team and a motivated & efficient work force
    • Installed Capacity, Cost effective production and timely fulfillment of orders
    • Increase in Business scalability

    The relevant quantitative factors are:

    Basic & Diluted EPSRONW (%)NAV (Rs.)
    31-Mar-160.505.41
    31-Mar-170.111.15
    31-Mar-183.2925.9714.01
    • Competitive Peers:
    Sr. No. ParticularsFace Value  (in Rs.)Basic EPS (In Rs.)P/E RatioRONW in %
    1Pashupati Cotspin Limited10NegativeNegativeNegative
    2Santaram Spinners Limited100.3626.312.08

     

    Axita Cotton Limited IPO Lead Managers

    Lead Managers
    BEELINE BROKING LIMITED
    SEBI Registration Number: INM000012546
    Address: Office No. 1 To 3,Vishwa Complex, First Floor, Opp.
    Jain Derasar, Navrangpura, Ahmedabad – 380 009
    Telephone Number: +91 79 6666 4007
    Email Id: mb@beelinebroking.com
    Investors Grievance Id: ig@beelinebroking.com
    Website: www.beelinebroking.com
    Contact Person: Mr. Vanesh Panchal
    CIN: U51900GJ2014PLC080598

    Axita Cotton Limited IPO Registrar to offer

    Registrar to the Offer
    LINK INTIME INDIA PRIVATE LIMITED
    SEBI Registration Number: INR000004058
    Address: C-101, 1st Floor, 247 Park, Lal Bahadur Shastri Maarg,
    Vikhroli (West), Mumbai – 400 083, Maharashtra
    Tel. Number: +91 22 4918 6200; Fax Number: +91 22 4918 6195
    Email Id: axita.ipo@linkintime.co.in
    Investors Grievance Id: axita.ipo@linkintime.co.in
    Website: www.linkintime.co.in
    Contact Person: Ms. Shanti Gopalkrishnan
    CIN: U67190MH1999PTC118368

    Other Details:

    • Statutory Auditor – M/s. Manish Dave & Co., Chartered Accountants
    • Peer Review Auditor –  M/s. Purushottam Khandelwal & Co., Chartered Accountants
    • Bankers to the Company –  Oriental Bank of Commerce

    Axita Cotton Limited IPO Review by Top 10 Stock Brokers

    Top Stock Brokers ReviewCompany ReputationCompetitive EdgeFinancial StatementPopularity IndexPromoters Reputation
    Angel Broking7.5/107.4/108.5/108.1/107.1/10
    Sharekhan7.2/107.1/108.6/108.1/107.2/10
    Kotak Securities7.3/107.5/108.4/108.1/107.3/10
    ICICI Direct7.3/107.3/108.7/108.1/107.1/10
    IIFL7.5/107.2/108.8/108.0/107.1/10
    Edelweiss7.5/107.4/108.4/108.3/107.2/10
    Zerodha7.4/107.1/108.5/108.1/107.0/10
    5Paisa7.1/107.1/108.4/108.1/107.1/10
    Karvy7.4/107.3/108.2/108.1/107.1/10
    Motilal Oswal7.1/107.1/108.6/108.3/107.2/10

    Axita Cotton Limited IPO Grey Market Premium

    The Axita Cotton Limited IPO Grey Market Premium price is Rs X, the Kostak rate is Rs X and the Subject to Sauda is X. 


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      Axita Cotton Limited IPO News

      News 1 – IPO ISSUE OPENS SOON (Download Prospectus)


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